ISLAMABAD: The Asian Development Bank (ADB) on Thursday cut its forecast for Pakistan’s economic growth to 3.7 per cent, citing higher energy costs and anticipated pressure on foreign remittances from Pakistanis abroad.
In its Asian Development Outlook (ADO) July 2026, the Manila-based lender, however, lowered its growth forecast for developing Asia and the Pacific to 4.9pc for 2026 from 5.5pc in 2025, marking a 0.2-percentage-point reduction from its April projections.
“Preliminary data show Pakistan’s economy growing by 3.7pc in FY2026 (ended 30 June 2026), supported by strong industry and services alongside modest agricultural gains. However, the growth forecast is revised down to 3.7pc for FY2027 due to higher energy costs and pressure on remittances”, said the Asian Development Outlook July 2026.
ADB had earlier projected a 4.5pc growth rate for the current fiscal year in its April 2026 forecast.
It also revised upward its inflation forecast for both FY2026 and the current fiscal year compared to its previous estimates made in April 2026.
